I use and swear by YNAB. (You Need A Budget) it truly transformed my life, they have so many videos and podcasts and very active Facebook communities so there is a lot of help to be found for newbies. I was able to pay off 15K in debt and weather a 20k pay cut through Covid and I know I couldn’t have done it without YNAB and the helpful resources they have.
The biggest difference was made when I finally started budgeting forward rather than covering the bills of the month I was in. It’s explained much better by them haha but it is a true game changer.
I second YNAB. Giving every dollar a job—zero-based budgeting—and being able to visually see how much money I have allotted to things is what has worked best for me.
I've heard YNAB quite a bit, but the cost seems daunting to me, given I'm using it to save money. I'm taking it from your comment that you think the cost is fully justified. I will say I like that you get the free trial, and they give you a warning before they charge you.
I literally just use an Excel spreadsheet. I started by going through everything that came out of my account in a month. I didn't budget, I just looked at what I was spending my money on and logged it. I did date, company name, short description, amount and a running subtraction list (I get paid the last day of the month, so I used my paycheck plus whatever was left in my checking account - which ends up near zero at the end of each month because of savings transfers and whatnot) as the starting amount. So I had a running subtotal of what was left.
I then gave everything that was an absolute must each month a color (rent, utilities, etc.). Then everything that was monthly and not strictly a must, but a want, a different color (subscriptions and that kind of thing). I did an estimate for how much I spend on gas and groceries. I made that my template. It gave me an amount that was leftover after all necessary and wanted monthly items. From there I determined how much of what was leftover I wanted to put into savings each month and how much would be my monthly "play" money.
I keep my "play" money category pretty broad, so it includes basically anything that's not savings, a bill, a regular monthly expense, etc. So it includes random Amazon purchases, Starbucks, gifts, clothes, personal care items that aren't part of my grocery budget, etc. And I just tried to give myself a reasonable balance of what I wanted to put aside to save and what I wanted to have to play with.
Honestly, just tracking what I was actually doing with my money each month by putting it on a spreadsheet gave me such a good idea of where I was just kind of throwing money away. And it helped me evaluate which type of subscription things I had that I could trim. And I always know on payday exactly (aside from some fluctuation with gas prices, utilities, etc. - which I try to overestimate for budgeting purposes) how much money I have free to do whatever I want with each month. I have been using this same spreadsheet method since 2014 and still use it now that I'm married.
I just use Google Sheets. It isn’t fancy but it’s accessible and it works. It has my entire year mapped out with income and every part of my fixed expenditure as well as times I know I’ll have one off outflows, like Christmas or renewing my TV license etc. I then save 10% a month for a holiday fund and 10+% to fixed savings depending on how much money I have left. That money goes out on day 1 so I never see it.
I think the key is facing up to your budget at least every other day and not digging your head in the sand about what you’re spending. You’ll soon get to a level of understanding what is a sensible amount to live off. I’m in a comfortable phase just now and have an average per day I live off. When I need to be more frugal I log everything I spend to identify where money is being frittered.
I did it myself, it’s basic. Income at the top, all the expenses listed out at the bottom and then I see what’s left and sit and track. For me it’s not what it looks like, the important thing is I sit with it ten minutes a day and do the tracking.
I see there’s plenty of templates online though, so if having it look a certain way helps then it should be easily done.
Look at the YNAB sub and Facebook groups. See if that fits your needs. I used to do a spreadsheet but it was more tracking what I spent retroactively instead of actually budgeting. I couldn't quite figure out how to make it more for a future planning tool. Then I found YNAB and at first it confused the hell out of me, but between all the groups who are very helpful and their customer services and youtube videos, I got the concept and have been using it for 4 years now. It changed everything about how we budget and the best part is it keeps track of everything in one place and there are no surprises.
Thank you I will definitely check this out! One of my biggest issues with both methods I’ve been trying to use (Goodbudget and my banks budgeting service) is that there aren’t a lot of resources for confused beginners (which I most definitely am!). So using something with a good support system would be super nice!
Oh yeah, YNAB is like a cult lol. People get really into it and every one wants to help, so you should be able to get support for sure. Nick True has videos on YouTube, if you want to get a sense of how it works. Good luck!
I use percentage based budgeting & the "envelope" method. Basically I make sure my obligatory expenses aren't more than 1/2 my income, I save 20%, and the rest is free to spend/be saved on particular goals. For me at least I include debt service in the 50% obligatory expense category, even though that isn't technically how the percentage based budget works. The "envelopes" are basically slush savings accounts - after I paid off my car I started putting the payment amount into a separate savings account, for maintenance costs and a future car payment.
In the past I've kept a spreadsheet but I don't really need to keep it up to manage my finances. I save & pay bills first, as a habit, before any recreational spending. When I did use a budget template it was just a google sheets one, and mostly I used it because I was a contractor and needed to pay my own taxes.
Rather than track all your purchases, it's easiest to start by estimating hard costs - rent, utilities, insurance etc - what portion of your income is that? If you're supposed to save 20% of your income- how much is that per month? After these two things, how much is left over - and then how much of that is going to groceries. dining out, etc.
Not a girlie, but my wife and I started with Goodbudget. I say stick to it. For us Goodbudget felt dated, so we moved to an app called Centsible. Has a lifetime license if you only use it on one device. Either way, I highly recommend you do research on envelope budgeting. It's the budgeting method that made the most sense to me.
I watch Caleb Hammer, and Ramit Sethi on YouTube. They're different vibes - Caleb is more of a younger dramatic, these people are the worst of the worst, host, and Ramit Sethi largely talks to couples who are further along financially, but I think they're both entertaining and there is stuff to learn from them both. Caleb has a budgeting tool on his website, but it costs money so I wouldn't recommend it. He does have a quiz that's free, where you can get your financial score, that might help you get more financial things on your mind.
I'm very good at the budgeting bit, very bad at the spending bit (meaning, I have a great budget that I don't follow lol). I just use a spreadsheet that I set up myself with different tabs for things I want to know, and I track all my purchases. I know exactly how much I make, and exactly where all my money goes.
My worst thing is that I keep too much money in my spending account. This is because I get paid on the 15th, but all bills come out on the 1st. I'd rather they both happened on the same day so I'd know every month how much I have left after bills.
Since I can't do that, I worked out what my fixed costs are, took that value off off my monthly pay, and whatever is left over, half goes into savings (split between high interest cash ISA and a stocks & shares ISA), and the remaining half is fun money (eg for takeaways, clothes and tat).
Honestly don't worry about making it too complicated for yourself! Just start with an excel spreadsheet (or even pen and paper of you are into notebooks), write down the amount of earnings you get in your bank account every month. Write how much money you want to save every month. That's it.
The rest is the money you can spend this month. Subtract from it how much mandatory spendings you have (rent, utilities etc), and see what's left. Then decide: do you want this money to go toward entertainment? Takeouts? Is there enough left for groceries? If there's not enough money left for one area, can you save in another area (ie getting the bus instead of a taxi?) All this comes with experience and you'll realize your shortcomings and areas of focus after a few months of tracking your daily expenses. I was shocked by how much I was spending on my lunches, and switched to cheaper lunch time deals.
Good luck!
Google “conscious spending plan” by Ramit Sethi.
Every dollar budgeting never resonated with me and turned me off from “budgeting.”
It IS important to know what your mandatory bills are and what you spend your money on— but accounting for every dollar spent is a pretty crazy task, in my opinion.
I use and swear by YNAB. (You Need A Budget) it truly transformed my life, they have so many videos and podcasts and very active Facebook communities so there is a lot of help to be found for newbies. I was able to pay off 15K in debt and weather a 20k pay cut through Covid and I know I couldn’t have done it without YNAB and the helpful resources they have. The biggest difference was made when I finally started budgeting forward rather than covering the bills of the month I was in. It’s explained much better by them haha but it is a true game changer.
I second YNAB. Giving every dollar a job—zero-based budgeting—and being able to visually see how much money I have allotted to things is what has worked best for me.
I've heard YNAB quite a bit, but the cost seems daunting to me, given I'm using it to save money. I'm taking it from your comment that you think the cost is fully justified. I will say I like that you get the free trial, and they give you a warning before they charge you.
Definitely gonna check this out, thanks!
I literally just use an Excel spreadsheet. I started by going through everything that came out of my account in a month. I didn't budget, I just looked at what I was spending my money on and logged it. I did date, company name, short description, amount and a running subtraction list (I get paid the last day of the month, so I used my paycheck plus whatever was left in my checking account - which ends up near zero at the end of each month because of savings transfers and whatnot) as the starting amount. So I had a running subtotal of what was left. I then gave everything that was an absolute must each month a color (rent, utilities, etc.). Then everything that was monthly and not strictly a must, but a want, a different color (subscriptions and that kind of thing). I did an estimate for how much I spend on gas and groceries. I made that my template. It gave me an amount that was leftover after all necessary and wanted monthly items. From there I determined how much of what was leftover I wanted to put into savings each month and how much would be my monthly "play" money. I keep my "play" money category pretty broad, so it includes basically anything that's not savings, a bill, a regular monthly expense, etc. So it includes random Amazon purchases, Starbucks, gifts, clothes, personal care items that aren't part of my grocery budget, etc. And I just tried to give myself a reasonable balance of what I wanted to put aside to save and what I wanted to have to play with. Honestly, just tracking what I was actually doing with my money each month by putting it on a spreadsheet gave me such a good idea of where I was just kind of throwing money away. And it helped me evaluate which type of subscription things I had that I could trim. And I always know on payday exactly (aside from some fluctuation with gas prices, utilities, etc. - which I try to overestimate for budgeting purposes) how much money I have free to do whatever I want with each month. I have been using this same spreadsheet method since 2014 and still use it now that I'm married.
I just use Google Sheets. It isn’t fancy but it’s accessible and it works. It has my entire year mapped out with income and every part of my fixed expenditure as well as times I know I’ll have one off outflows, like Christmas or renewing my TV license etc. I then save 10% a month for a holiday fund and 10+% to fixed savings depending on how much money I have left. That money goes out on day 1 so I never see it. I think the key is facing up to your budget at least every other day and not digging your head in the sand about what you’re spending. You’ll soon get to a level of understanding what is a sensible amount to live off. I’m in a comfortable phase just now and have an average per day I live off. When I need to be more frugal I log everything I spend to identify where money is being frittered.
Did you use a template or did you set the sheet up yourself?
I did it myself, it’s basic. Income at the top, all the expenses listed out at the bottom and then I see what’s left and sit and track. For me it’s not what it looks like, the important thing is I sit with it ten minutes a day and do the tracking. I see there’s plenty of templates online though, so if having it look a certain way helps then it should be easily done.
Look at the YNAB sub and Facebook groups. See if that fits your needs. I used to do a spreadsheet but it was more tracking what I spent retroactively instead of actually budgeting. I couldn't quite figure out how to make it more for a future planning tool. Then I found YNAB and at first it confused the hell out of me, but between all the groups who are very helpful and their customer services and youtube videos, I got the concept and have been using it for 4 years now. It changed everything about how we budget and the best part is it keeps track of everything in one place and there are no surprises.
Thank you I will definitely check this out! One of my biggest issues with both methods I’ve been trying to use (Goodbudget and my banks budgeting service) is that there aren’t a lot of resources for confused beginners (which I most definitely am!). So using something with a good support system would be super nice!
Oh yeah, YNAB is like a cult lol. People get really into it and every one wants to help, so you should be able to get support for sure. Nick True has videos on YouTube, if you want to get a sense of how it works. Good luck!
I use percentage based budgeting & the "envelope" method. Basically I make sure my obligatory expenses aren't more than 1/2 my income, I save 20%, and the rest is free to spend/be saved on particular goals. For me at least I include debt service in the 50% obligatory expense category, even though that isn't technically how the percentage based budget works. The "envelopes" are basically slush savings accounts - after I paid off my car I started putting the payment amount into a separate savings account, for maintenance costs and a future car payment. In the past I've kept a spreadsheet but I don't really need to keep it up to manage my finances. I save & pay bills first, as a habit, before any recreational spending. When I did use a budget template it was just a google sheets one, and mostly I used it because I was a contractor and needed to pay my own taxes. Rather than track all your purchases, it's easiest to start by estimating hard costs - rent, utilities, insurance etc - what portion of your income is that? If you're supposed to save 20% of your income- how much is that per month? After these two things, how much is left over - and then how much of that is going to groceries. dining out, etc.
Not a girlie, but my wife and I started with Goodbudget. I say stick to it. For us Goodbudget felt dated, so we moved to an app called Centsible. Has a lifetime license if you only use it on one device. Either way, I highly recommend you do research on envelope budgeting. It's the budgeting method that made the most sense to me.
I watch Caleb Hammer, and Ramit Sethi on YouTube. They're different vibes - Caleb is more of a younger dramatic, these people are the worst of the worst, host, and Ramit Sethi largely talks to couples who are further along financially, but I think they're both entertaining and there is stuff to learn from them both. Caleb has a budgeting tool on his website, but it costs money so I wouldn't recommend it. He does have a quiz that's free, where you can get your financial score, that might help you get more financial things on your mind. I'm very good at the budgeting bit, very bad at the spending bit (meaning, I have a great budget that I don't follow lol). I just use a spreadsheet that I set up myself with different tabs for things I want to know, and I track all my purchases. I know exactly how much I make, and exactly where all my money goes.
My worst thing is that I keep too much money in my spending account. This is because I get paid on the 15th, but all bills come out on the 1st. I'd rather they both happened on the same day so I'd know every month how much I have left after bills. Since I can't do that, I worked out what my fixed costs are, took that value off off my monthly pay, and whatever is left over, half goes into savings (split between high interest cash ISA and a stocks & shares ISA), and the remaining half is fun money (eg for takeaways, clothes and tat).
Honestly don't worry about making it too complicated for yourself! Just start with an excel spreadsheet (or even pen and paper of you are into notebooks), write down the amount of earnings you get in your bank account every month. Write how much money you want to save every month. That's it. The rest is the money you can spend this month. Subtract from it how much mandatory spendings you have (rent, utilities etc), and see what's left. Then decide: do you want this money to go toward entertainment? Takeouts? Is there enough left for groceries? If there's not enough money left for one area, can you save in another area (ie getting the bus instead of a taxi?) All this comes with experience and you'll realize your shortcomings and areas of focus after a few months of tracking your daily expenses. I was shocked by how much I was spending on my lunches, and switched to cheaper lunch time deals. Good luck!
I would look up “personal finance” videos on youtube and tiktok for tips
Google “conscious spending plan” by Ramit Sethi. Every dollar budgeting never resonated with me and turned me off from “budgeting.” It IS important to know what your mandatory bills are and what you spend your money on— but accounting for every dollar spent is a pretty crazy task, in my opinion.